BackMukand to transfer alloy and steel business to subsidiary
The restructuring will cost Rs1,590 crore and is intended to facilitate the possible introduction of a strategic partner
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Mumbai: Mukand Ltd said on Monday that it will transfer its special alloys and steel business by way of a so-called slump sale to a new subsidiary for ₹ 1,590 crore.
The restructuring is intended to facilitate the possible introduction of a strategic partner, the company said. The firm manufactures stainless steel, alloy steel, stainless steel billets and exports hot rolled bars.
The subsidiary is yet to be formed, the firm said in a filing to exchanges. The steel business has a capacity of 370,000 tonnes per annum.
The consideration will be paid in cash by the subsidiary and the company will seek approval from its shareholders.
A slump sale entails the transfer of corporate entities for a lump sum without values being assigned to the individual assets and liabilities.
Shares of Mukand closed fell 0.44% on Monday to close at ₹ 46 on the BSE while the benchmark Sensex index closed at 27,701.79 points, 1.21% higher than its previous close.
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